| Distributed ledger technology (DLT) | A decentralized database shared and synchronized across multiple nodes in a network; no single central authority controls the ledger |
| Blockchain | A specific type of DLT where transactions are grouped into blocks that are cryptographically linked in a chronological, immutable chain |
| Consensus mechanism | The process by which nodes in a decentralized network agree on the current state of the ledger and validate new transactions (e.g., PoW, PoS) |
| Proof of Work (PoW) | A consensus mechanism where miners compete to solve complex computational puzzles to validate transactions and add blocks; energy-intensive but highly secure (used by Bitcoin) |
| Proof of Stake (PoS) | A consensus mechanism where validators stake cryptocurrency as collateral and are selected to validate blocks based on stake size; more energy-efficient than PoW (used by Ethereum) |
| Smart contract | A self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met; eliminates the need for intermediaries |
| Permissioned network (private blockchain) | A blockchain network where access, participation, and validation are restricted to authorized entities; used in enterprise applications |
| Permissionless network (public blockchain) | A blockchain network open to anyone; any participant can read, write, and validate transactions (e.g., Bitcoin, Ethereum) |
| Cryptocurrency | A native digital currency of a blockchain network; serves as a medium of exchange, store of value, and/or unit of account |
| Bitcoin (BTC) | The first and largest cryptocurrency by market cap; created in 2009; uses PoW consensus; often called “digital gold” for its store-of-value properties |
| Altcoin | Any cryptocurrency other than Bitcoin (e.g., Ethereum/ETH, Solana/SOL, Cardano/ADA) |
| Stablecoin | A cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency (e.g., USDT, USDC) or backed by reserves |
| Meme coin | A cryptocurrency created as a joke or driven primarily by community sentiment and social media rather than fundamental utility (e.g., DOGE, SHIB) |
| CBDC (Central Bank Digital Currency) | A digital form of fiat currency issued and backed by a central bank; aims to combine digital efficiency with central bank trust |
| NFT (Non-fungible token) | A unique digital token representing ownership of a specific asset (digital art, collectibles, music); each NFT is distinct and not interchangeable |
| Utility token | A digital token that provides access to a specific product or service within a blockchain platform; not designed as an investment |
| Security token | A digital token representing ownership in a real-world asset (equity, debt, real estate); subject to securities regulations |
| Governance token | A digital token granting holders voting rights on protocol decisions, upgrades, and parameter changes in a decentralized project |
| DeFi (Decentralized Finance) | An ecosystem of financial applications built on blockchain that replicate traditional financial services (lending, trading, insurance) without intermediaries |
| ICO (Initial Coin Offering) | A fundraising method where a project issues and sells new cryptocurrency tokens to investors; analogous to an IPO but for digital tokens |
| Cryptocurrency wallet | Software or hardware used to store, send, and receive cryptocurrencies; holds the private keys needed to access and transact on the blockchain; can be “hot” (online) or “cold” (offline) |